Crypto Trader Lost $60k in Just Two Hours Due to FOMO

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A person involved in trading digital currencies decided to jump on the bandwagon by investing in a popular cryptocurrency, anticipating substantial profits. Unfortunately, things didn’t go as planned, and he ended up losing an amount of around $60,000 within a mere two-hour timeframe.

Crypto Trader Lost $60K in MPLX FOMO

January 7 saw the disclosure by onchain analytics platform Lookonchain of a costly error made by a cryptocurrency trader, who parted ways with $60k due to following the herd mentality (FOMO). According to Lookonchain’s post, this investor inadvertently invested twice in a freshly-launched crypto called Miniperplx AI (MPLX). Unfortunately, his decisions turned out to be misguided on both occasions, resulting in a lesson learned the hard way about crypto trading that will last a lifetime.

He succumbed to the fear of missing out (FOMO), spending $31.8k on tokens when MPLX reached a high of $0.02499. However, the price immediately dropped sharply. Instead of holding onto his investment, he sold the tokens for just $12.8k, resulting in a significant loss. This investor then repeated this error, purchasing another $30.5k worth of tokens when the price rose to $0.001, only to witness another crash. This pattern of blunders led to a massive $60k loss within a 2-hour period.

Despite MPLX’s current decreasing price, some within the community believe it would have been beneficial to hold onto the tokens until prices rise again.

MPLX Downtrend Continues But Maintains 900% Rally

The Miniperplx AI’s price has dropped following its past surges, causing a crypto investor to incur thousands in losses. As per Dexscreener, it is currently priced at $0.001407 and boasts a market capitalization of $1.4M. Interestingly, despite showing consolidation at the moment, the MPLX price has skyrocketed by over 900%. Most notably, the trading volume stands at an impressive $75.1M, indicating strong interest.

The debut of the new launch tends to cause significant fluctuations in value, resulting in frequent changes in price. This volatility is also evident in the case of MPLX’s introduction and the losses experienced by traders. However, other traders have capitalized on their crypto trading strategies, amassing a profit of three million within ten hours.

What’s The Lesson Here?

The feeling of not wanting to miss out on opportunities (FOMO) is a common issue in the crypto trading world because these trending cryptocurrencies can be quite unpredictable. This risk isn’t just about liquidity, as people who join the hype late or invest in popular cryptos at their peak often suffer significant losses. For instance, a trader recently lost $60,000 in just two hours after investing in a trending AI crypto, MPLX. What made things worse was that he bought high and sold low, exacerbating his losses. To avoid similar experiences, it’s crucial to approach investments in volatile and newly launched cryptos with care.

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2025-01-07 13:33